Motability cuts mileage to 10,000 a year with 25p for every extra mile

Disabled drivers who take out a new Motability Scheme lease from 1 July 2026 can travel only 10,000 miles a year before paying 25p for every extra mile, after Motability cut the allowance from 20,000 miles. Under the old package, drivers who went over their limit paid 5p a mile, according to the Daily Mirror.

The scheme has also cut the number of replacement tyres included in new leases, which has raised safety concerns. Motability says both changes were needed to keep the scheme affordable after tax changes announced by Chancellor Rachel Reeves. It claims that doing nothing would have added £1,100 to the average lease.

Ministers have made it clear that this is Motability's decision. Answering questions from MPs, Sir Stephen Timms, Minister of State for Social Security and Disability, said responsibility for the terms and running of the scheme sits with Motability Foundation and its Board of Governors.

How the new mileage and tyre rules work

The changes to the leasing package were announced on 26 March. Sir Stephen told Parliament that they reduce the mileage allowance from 20,000 a year to 10,000 a year and apply only to new leases. Drivers already in a lease keep their existing mileage allowance.

For lease agreements starting on or after July 1, Motability has brought in what it calls fair usage limits on replacement tyres. A 3-Year Lease now covers up to 6 tyres in total, with no more than 4 allowed for accidental damage. A 5-Year Lease on a wheelchair accessible vehicle covers up to 10 tyres, with a maximum of 6 for accidental damage.

Andrew Miller, the CEO of Motability Operations, said in a recent interview that it was "clear as day" from feedback that mileage is "a huge concern for some customers". He blamed "a sudden cost imposed on us very quickly by the government" and added: "We're under no illusion, this is really challenging." On tyres, Sir Stephen said that if a customer reaches the limit, Motability Operations will explain their options clearly.

Who will feel the 10,000-mile limit

Motability Foundation told the government that approximately 75% of customers already drive fewer miles than the new allowance. In its own statement, Motability put the figure at 73% of customers. Both figures come from Motability, and either way the scheme accepts that some drivers will be hit.

The people most exposed are those who drive long distances, and concern has focused on rural areas where journeys tend to be longer. Liberal Democrat Edward Morello asked what assessment had been made of the impact on disabled people in rural constituencies in the South West. The minister's reply did not set out any assessment. It said only that Motability understands the changes will affect customers differently and is keeping them under review.

For drivers who do go over the limit, the excess charge has risen sharply, from 5p to 25p a mile. Motability argues that a lower standard mileage cuts insurance, repair and maintenance costs, so it can keep essential services in the package.

Key numbers

• 10,000 miles: the yearly allowance on new leases under the new rules.
• 25p: the charge for each mile driven over the allowance on new leases.
• 20,000 miles: the old yearly allowance, which still applies to existing leases.
• 5p: the old charge for each excess mile.
• £1,100: Motability's estimate of how much average lease costs would have gone up if it had made no changes.
• 73%: the share of customers Motability says already drive within the new limit.
• 26 March: the date the changes to the leasing package were announced.

What happens next with exceptions and reviews

The new rules apply to leases starting on or after 1 July 2026, so anyone ordering a new car now is covered by them. Motability promised to publish details of an exceptions process for the mileage rules before July 1, but when the Mirror reported it had not released any. The Department for Work and Pensions meets Motability Foundation every quarter to discuss how the scheme is run, and Motability says the changes remain under review.

Separately, Motability has halted its Drive Smart black box scheme. Under that scheme, all new first-time leases and those with named drivers under 30 had to fit the device. Motability admitted the experience for users had not been as it should be, and it said the Drive Smart decision is not linked to the mileage changes.

What you can do now

If you are already in a lease, your mileage allowance has not changed, so check your current agreement for your limit and end date. The new rules only apply when you take out a new lease, so it is worth knowing how far you really drive before you renew.

Keep a record of your yearly mileage from your dashboard or your service records. If you expect to go over 10,000 miles, ask Motability directly whether an exceptions process now applies and what evidence it needs, because when the Mirror reported, no details had been published.

Before signing, check how many replacement tyres your new lease includes and how many of those can be used for accidental damage. If you are worried about the changes, you can raise them with your MP. MPs from different parties have already put questions to ministers about them.

Your questions answered

Does the new mileage limit apply to my current Motability car?

No. Sir Stephen Timms told Parliament that the changes only apply to new leases and that the mileage allowance on existing leases has not changed. The new limit applies when you start a lease on or after 1 July 2026.

Why has Motability made these changes?

Motability says the cuts are a response to new tax costs announced in the Autumn Budget, which apply from July 1. It claims these costs would add £1,100 to leases on average if no other action were taken, and says that would be unaffordable for many customers.

Can I get an exception if I need to drive further?

Motability said details of an exceptions process to the mileage rules would be announced before July 1. When the Mirror reported, it had not released any details, so check with Motability directly before you agree to a new lease.